Waterscan wins CDP reporting accreditation

Waterscan has become the UK’s only water consultancy to win accreditation by not-for-profit organisation CDP (formerly the Carbon Disclosure Project).

CDP' global environmental disclosure system has resulted in engagement on environmental issues worldwide. Disclosure is widely regarded by investors and other stakeholders as the critical first step towards positive action on the environment.

Water is rising on the disclosure agenda, as it is becoming an increasingly important business risk. Several Waterscan customers, including Coca-Cola European Partners, Morrison’s, Sainsbury’s and Whitbread, already disclose on water.

However, water disclosure is complex because there are many variables to consider. CDP’s partner accreditation process is robust, to ensure that businesses can be assured about the quality of the service they will receive from the provider.

Waterscan’s water strategy manager, Anastasia Sousanoglou, explained: “A tonne of carbon has the same impact no matter where on the planet it is emitted, but the environmental impact of consuming a cubic meter of water can vary dramatically. Consider, for example, water use at a time and in an area with full reservoirs and low demand versus the same consumption in a water scarce area in the middle of a drought.”

CDP – action pays

The impact on businesses arising from climate change and other threats linked to water shortage could be more than five times greater than the cost of action to address them according to a recent report by CDP.

In its annual global water report for 2020, CDP reported that close to 3,000 businesses revealed their required investment to mitigate reported risks associated with dwindling water resources ran to $55bn while the potential impact of reported water risks was $301bn.

“The potential financial impact of water risks outweighed the cost of acting on those risks for more than three

quarters of companies reporting on both figures,” according to CPD.

“The moral case for investment is clear. Our analysis proves that the business case for this investment is also clear,” said CPD.

CPD reported also that the amount of freshwater available to each person has dropped by one fifth since the start of the millennium as water shortages affected more than three billion people. And it said the current rate of groundwater withdrawal was outstripping recharge.

The report emphasised the importance of businesses’ transparency on water security in guiding investors: “If this data is hidden from view, it is difficult, if not impossible, for investors to evaluate a company’s investment performance,” it said. CPD cited analysis by Banque de France that showed that investors subject to climate disclosure requirements “reduced their financing of fossil fuel by 40% compared to investors in the control group. " In 2020 we saw a 20% increase in corporate disclosure through CDP’s water security questionnaire. 5,537 companies were requested to disclose data by their investors or their business customers; 2,934 companies disclosed, up from 2,433 in 2019,” CPD reported.